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SR 06-28-2016 3B City Council Report City Council Meeting: June 28, 2016 Agenda Item: 3.B To: Mayor and City Council From: Martin Pastucha, Director, Public Works, Resource Recovery & Recycling Subject: Award Bid for Fleet Washing Services Recommended Action Staff recommends that the City Council: 1. Award Bid #4246 to Qualified Mobile, Inc., a California-based company, for fleet washing services; 2. Authorize the City Manager to negotiate and execute an agreement with Qualified Mobile, Inc., in an amount not to exceed $47,432 (including a $5,000 contingency) for one year, with 4-additional 1-year renewal option(s), on the same terms and conditions for a total amount not to exceed $237,160 over a 5-year period, with future year funding contingent on Council budget approval. Executive Summary The City contracts for fleet washing services of refuse, organics and recycling collection vehicles, as well as street sweeping vehicles used by the Resource Recovery & Recycling Division. In March 2016, the City solicited bids for such services. After reviewing the three bids received, staff recommends Qualified Mobile Inc. as the best , and lowest bidder to provide fleet washing services for a total not to exceed amount of $237,160 over a five-year period. This recommended action is consistent with Council- approved Policy for hiring contracted staff for non-professional services. Background There are currently 50 heavy duty service vehicles within the Resource Recovery & Recycling Division that require supplemental fleet washing services. Regular cleaning of the vehicles eliminates odor problems as well as grease and material build-up around the mechanical equipment and underbody, which allows the vehicles to run more efficiently. Records indicate that contracting for fleet washing services began as early as 1999. The service vehicles at that time were being washed by the contractor only. As a cost saving measure, in 2010 management changed this practice whereby the contractor would be required to wash each vehicle every other week, while the employees 1 of 5 assigned to the service vehicle would wash the vehicle on alternate weeks. Eliminating the contracted service entirely was not considered, as staff did not have the expertise and training to perform a thorough cleaning, which included underbody care and working around the mechanical systems. In adherence to this practice, on December 10, 2013 Council awarded Bid #4102 to Qualified Mobile, Inc. for supplemental fleet washing services (Attachment B). Discussion The City requires supplemental fleet washing services for the refuse, organics and recycling collection and street sweeping vehicles. refuse and food waste containers from both residential and commercial customers all over the City. Food waste and liquids from containers leach through the packaging causing a messy build-up. More often than not, when the containers are dumped garbage will splatter on the top of the trucks and on the outsides of the truck. Flies and birds are very attracted to the sticky liquids and solid material on the trucks, so it is important that trucks are cleaned regularly. Regular cleaning of the vehicles also eliminates odor problems as well as the grease and material build-up around the mechanical equipment and underbody, which allows the vehicles to run more efficiently. A vehicle washing station is located in the City Yards which is used by all City Departments. Each wash cycle takes approximately 20 minutes and requires approximately 200 gallons of water and cleaning products to thoroughly wash a service vehicle. All the cleaning products used meet sustainability guidelines and are approved by the Office of Sustainability and the Environment. Drivers generally wash vehicles at the end of the shift on a scheduled rotation. Assuming the wash station is operational and not in use, only three vehicles a day can be washed. At this rate, it would take almost one month to wash each vehicle at least once without the supplemental contracted service. In order to wash each vehicle weekly using in-house staff only, additional personnel would need to be hired, so that 2 of 5 the core collection services are not disrupted. Method of Service On January 13, 2015, Council adopted a Policy for Hiring Contracted or As-needed Staff for Non-professional Services (Attachment C). This policy includes criteria under which contracting for a public service is appropriate. Staff has reviewed the service needs, and recommends providing fleet washing services through a contractor due to the following criteria: Specialized/Technical Expertise: Service requires technical or specialized expertise that City staff could not or does not provide, and is outside of core services mission of the department. Performance Review: Ability to quantify and adequately assess contract services provided. Vendor Selection In March 2016, the City published Notices Inviting Bids to provide fleet washing services in accordance with City specifications. The bid was posted on the City's online bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. 14 vendors downloaded the bid. Three bids were received and publicly opened on April 7, 2016 per Attachment A. Bid Results are as follows: Bidder Monthly Cost Annual Cost Qualified Mobile, Inc $3,536.00 $42,432.00 . Green Global, Inc. $4,456.64 $53,479.68 Khong Enterprises, Inc. $5,800.00 $69,600.00 Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, quality of service, and compliance with City specifications. Qualified ; its prices remain unchanged since 2013 and the service provided is excellent. Based on these criteria, Qualified Mobile, Inc., the 3 of 5 lowest bidder, is recommended as the best bidder. Alternatives Since all the heavy duty service vehicles are used Monday Friday, the only days the vehicles could be washed is on the weekends. Staff analyzed two different scenarios for performing this service in-house which included hiring permanent part-time employees and/or performing the work on an overtime detail. These options were eliminated because all permanent part-time employees are required to work at least 20 hours per week and the analysis only required 10 hours per week. The overtime detail was estimated at $53,553. This cost assumed that an existing portable pressure washer could be used in addition to the wash station. Another determining factor was that the contractor is responsible for detailed cleaning of the entire vehicle including inside the hopper, underbody and canopies while in-house staff washing consists of pressure washing the outside of the vehicle to wash off the grime and debris only. Staff recommends that the supplemental services be approved to insure a clean and odor free collection vehicles to service to the resident and businesses of Santa Monica. Financial Impacts and Budget Actions The contract to be awarded to Qualified Mobile, Inc. is for an amount not to exceed $237,160. Funds of $47,432 are included in the FY 2016-17 Budget Plan in the Public Works Department. The contract will be charged to account 27441.555010. Future year funding is contingent on Council budget approval. 4 of 5 Prepared By: Annette Morales, Principal Public Works Analyst Approved Forwarded to Council Attachments: A. Bid #4246 Summary B. December 10, 2013 Staff Report C. January 13, 2015 Staff Report 5 of 5 wĻŅĻƩĻƓĭĻʹ AgreementNo.10325(CCS)